Rental affordability index - Sydney

Here's a conundrum - renting in Sydney is unaffordable

Are our tenants paying too much? If 30% of income is deemed unaffordable, yet property owners manage to stump up 50% of income to mortgages on IO?

If tenants only paid 30%, then wouldn't that leave those 'rich' landlords in a more dire position of having a larger gap between costs and rent?

 

We are paying 50% at present. We are planning to move back to Canberra in July largely for this reason - my mortgage for a 3x1 house is cheaper than rent for a 1 bed + study apartment in Sydney

 

We left Darwin when it all went nuts too...we were at 50 percent of our income and rents were rising 10 percent a year.

F that!

We were able to come back once everything crashed....but if it hadn't, we were going to move to Brisbane or Cairns...hell even Sydney was cheaper at the time!

 

Sydney yields are currently 2-3% so if anything rent will get even more expensive for tenants...

 

Again it all comes back to wages growth (or lack of) for Mr & Mrs Joe Average
Sure there is inflation & property price growth, everything except for wages it seems
30% of income seems far too low to be unaffordable (gross or net?)
70% of my net income goes on loans
Lucky the other half works
Or we too could be renting

 

did a quick comparison with London affordability (using very rough numbers)



Doesn't seem as bad as London yet.

Wonder why cities like Brisbane and Adelaide are not throwing incentives for big companies to set up (bigger) shop locally - seems there for the taking to really boost population growth and desirability in these cities.

 

London has much better public transport though so overall cost of living is lower

 

Rental affordability Brisbane V Sydney.

 

Is london average really 50,000 pound? The low level jobs there pays for less.. Quick google I found , it says 40,000 pound...

 

I don't think tenants in Sydney are paying too much.

I think a combined net family income is about $2K pw.

$500 pw will get a decent house in Western Sydney.

On these figures rents are cheap.

The couple in the article shouldn't complain. They are only paying $430 pw for a house in Parramatta! And they must be earning $100K pa gross.